The first rule of Fight Club
- The first rule of Fight Club is you don't talk about tapering. The second rule of Fight Club is you DO NOT talk about tapering. The ECB did not talk about tapering. The ECB did not talk about talking about tapering. The ECB will probably taper its quantitative policy.
- The third rule of Fight Club is if you go limp, the fight is over. The UK's prime minister meets one of the many presidents of Europe on the fringes of the EU leaders' summit, and it is extremely unlikely that either side is going to demonstrate anything other than steely determination.
- The fourth rule of Fight Club is two guys to a fight. The US presidential election race continues. Actually, markets are now focusing their interest on Congress as the balance of Congress is likely to determine the extent to which the presidential policy agenda is carried out.
- Out of the combat arenas of policy and politics we have an improvement in UK consumer confidence (on a little-watched survey), and the Eurozone's survey of professional forecasters. The latter may be more accurate as a guide to economic reality than surveys of businesses and consumers.